Though Borders had received a tentative “stalking horse” bid earlier this month for around $215 million, that deal has since fallen apart and no one else has stepped up to the bidder’s box. Thus, the company has decided to say “aw, screw this,” and liquidate.
Lovers of lukewarm pizza, despair. Troubled pizza chain Sbarro is getting ready to file for Chapter 11 Bankruptcy. The slice slingers are $365 million in debt and made the move after missing their interest payments. Part of the reason Sbarro has been suffering is because it has a lot of shops tied up in malls. Traffic to those dying down with the recession and the rise of online shopping has meant fewer patrons hitting the food court. The other reason is that their pizza is just sad.
Ultimate Electronics, a Colorado-based chain, took on a nationwide expansion in 2010, opening new stores, entering new markets, and taking over a lot of empty retail space abandoned by Circuit City. Now the big-box dream is over: the company filed for Chapter 11 bankruptcy in late January, and announced this week that it will liquidate and close all 46 stores.
Get ready to say goodbye to the E-Trade baby and Frontier Airlines. According to 24/7 Wall Street, the two businesses are among their 10 picks for companies that will not survive the year. Others that may not be long for this world: Sara Lee, Gateway and Office Depot.
Blockbuster told Hollywood studios that it’s planning to file for bankruptcy in mid-September.
It’s been a while since we’ve had a good bankruptcy rumor floating around. Jezebel says thong superstore American Apparel is just asking for it: “[The retailer] has experienced declining year-on-year same-store sales in every month for which the company has made records available since February, 2009.”
Extended car warranty company US Fidelis already stopped selling new car service contracts and laid off over half of their staff at the end of 2009, and has now filed for Chapter 11 bankruptcy protection.
Henry Unger at the Atlanta Journal-Constitution has put together a multi-part series of questions and answers from readers. The detailed answers are provided by Consumer Credit Counseling Service of Greater Atlanta, and the questions–which I’ve listed below–cover a broad spectrum of personal finance issues, including credit cards, mortgages, and credit reports.
A chain of events over the last month does not bode well for the continued existence of the no-credit-check, allegedly scammy computer purveyor BlueHippo. When the FTC found the company in contempt of its agreement to stop scamming people, Bluehippo’s payment processor froze the company’s funds with little notice. The company was unable to pay its bills and filed for Chapter 11 bankruptcy. Now, the company has changed to a Chapter 7 filing (liquidation) and will most likely go out of business.
According to SpendMatters, one big reason the government burned through $2.3 billion in TARP funds for CIT even though it was buckling under debt was to try to avoid ruining everybody’s Christmas this year.
So long, Hummer. Sort of. GM and Chinese company Tengzhong are closer to their deal to sell the Hummer brand.
If you asked us, we would recommend that you not buy a third-party extended warranty for your car. If the main selling point for said warranty were that you would receive a full refund if you never filed a claim…we’d suspect that something might go wrong with this plan.
Saturn will not have a new life as part of Penske, the company that, among other things, distributes Smart cars in the U.S. Talks between Penske and GM fell apart today, and so did any chance for a deal.
Cupcakes all around!
Government General Motors emerged from bankruptcy today, and the shiny new version of GM is now leaner, in charge, and ready to manufacture cars that people actually want to buy. Maybe.
General Motors has reached an agreement with the government to let consumers file what are known as product-liability claims after the company escapes from bankruptcy protection. The big win for consumers means that if a manufacturing defect in an old G.M. causes injuries in the future, consumers will still be able to sue G.M. in state court.
Those home ticket-printing fees just weren’t enough to help Six Flags pay down their $2.4 billion debt load. The economy and bad weather have taken their toll, and the company declared Chapter 11 bankruptcy over the weekend.